RRB-1099-R

[jasdlm]

Would someone please confirm that the entire amount (less employee contributions amortized over life expectancy) reported on form RRB-1099-R goes on Line 16b?

I'm really confused about the RR Retirement. Everything I read indicates there is Tier I and Tier II. I thought Tier I was akin to SS. Why isn't part of the benefit sent through on a RRB-1099 instead of an RRB-1099-R? Seems like this guy doesn't get the 15% break on part of the income (85% taxable) that he would get if he had an RRB-1099.

Sorry. First Railroad Retirement Client.

Thanks for any clarification.

[Lynn EA USTCP in Louisiana]

Keep a copy of the client's section of the RRB-SSA for your files. There is a nice workbook that RRB puts together for taxpayers (and tax preparers) use.

Blue section - Box 5 - Social security benefits -

Green section - Box 7 - Gross and taxable amount of pension; equates to Boxes 1 and 2 of 1099-R

BUT, look at the Green section - boxes 4 is what I equate to box 1 of 1099-R; I use the simplified method to calculate the taxable portion. The 1099-RRB gives you the employee's contributions in box 3 of the green portion.

Hope this helps, Lynn

[ljwalters]

At the top of the 1099 R worksheet you will find a drop down to choose RRB-1099-R. Then a new set of field opens above payer's name that matches the railroad forms. Input there and it will flow. And yes that is the amount on line 16b of the 1040